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If you're looking at a bent shaft or housing you may want to find a complete rear axle assembly from a wrecker, if yours has unknown significant damage you may blow a lot of $$ before it's right. The shaft and bearings and housing could be bad and if you start changing 1 at a time you may get in deep.
If you pull the pan-hard you will be able to shift the truck left and right to almost wherever you want. Sounds like you're getting the 4-link with panhard understood though at this point. If the panhard was bent due to a hit on a rear wheel you're going to have some other issues I think.
What's the service history on this truck, is it new to you, any known collision history?
EDIT, 2001 with 65k you just picked up, ok more about the collision and "quality repairs" then?
Good luck with it!
- Should there be any gear oil around the skid control gear? other side seems bone dry
- If the axle did move out a bit, is this normal?
- Last but most important, do I need to lift the truck completely off the ground to get the axle to center again? Even after taking the panhard off the driver side tire is still almost an inch closer to the frame than the passenger side
I have a 2000 LC that I purchased used several years ago. It looked in to be in very good shape with no signs of accidents or hard wheeling. Had what I thought was a four wheel alignment done on it before installing a set of new 295 BFG ATs. To my dismay the inside of the rear tires wore very quickly. After a couple of trips to different alignment shops I found out that rear axle housing was bent! After considering the options of used axle assembly $$$ or a new axle housing $$$, I decide to try and straighten it myself. After a bit of planning I wrapped a chain around the axle housing on one side of the differential in a double V shape and used a 30T hydraulic jack with a saddle from a harbor freight pipe bender on it at V in the chains to apply some serious bending force. After a couple of snapped chains and the application of some heat with a couple of MAP torches near the housing flange, I was able to get it straight. There is a pretty simple way to check for bend in the axle housing that leads to a toe in or out condition in the wheels. That method is to take off the wheels and place some long straight bars or box tubing across the axle shaft flanges or flat face of the parking brake rotors. If using the rotors as a reference point, install some lug nuts against the drums to ensure they are flat with respect to the axle shaft flange. Then using a tape measure, take measurements from one side of the truck to the other across the bars at equal distances fore and aft of the hubs. If the measurements do not match, then the housing is bent. I used this same measurement method to check many times during the straightening progress. You do have to bend a little past straight(over-bend it) some as the housing will have some spring back. I have put about a 120k mi on it since straightening. The only thing I had to do to it since straightening was to replace the oil seal on the side that was heated. I did drain the oil from the differential before applying heat and removed the ABS sensor put a heat shield on the rear shock. Hope your housing is not bend, but if it is, it may be possible to straighten it.
Have you pulled the wheel and checked for play in the axle shaft and runout of the wheel mounting surface?